Tea Development & Promotion Scheme To Boost Tea Sector

The Government of India is implementing the Tea Development & Promotion Scheme (TDPS) nationwide, with Assam receiving focused support to strengthen production, quality and the value chain of small tea growers. The Tea Board is leading the initiative, which aims to modernise plantations, expand exports and improve the capabilities of grassroots producer groups.

Major Objectives of the TDPS Scheme

The scheme targets higher tea productivity, improved market quality and enhanced export competitiveness. It also supports the mobilisation of small tea growers into SHGs and FPOs, enabling them to participate in processing and value addition. Assistance for setting up mini tea factories and capacity-building programmes forms a core component of the initiative.

Financial Allocation and Utilisation in Assam

Between 2021-22 and 2025-26 (up to 31 October 2025), ₹152.76 crore was allocated to Assam under Tea Board’s budget, of which ₹150.20 crore has been utilised. The State-specific initiatives reflect a high implementation rate and sustained institutional support to growers.

Key Activities and Outcomes in Assam

During the period, Assam benefitted from replantation across 437.42 hectares, the creation of 318 SHGs, 143 FPOs and 26 FPCs, and the establishment of 31 mini tea factories. Other interventions included converting 30.32 hectares to organic cultivation, setting up 30 farm field schools and conducting 1,343 capacity-building programmes. Tea exports from India— including Assam Tea—rose from USD 751.07 million in 2021-22 to USD 923.89 million in 2024-25, marking a 7.15% CAGR.

Exam Oriented Facts

• ₹150.20 crore utilised in Assam under TDPS up to October 2025.
• 318 SHGs, 143 FPOs and 26 FPCs formed in the State.
• 31 mini tea factories established and 437.42 ha replanted.
• Tea exports grew at a CAGR of 7.15% between 2021-22 and 2024-25.

Findings of DMEO Evaluation

An evaluation by DMEO, NITI Aayog, submitted in May 2023, highlighted satisfactory implementation of plantation schemes and strong progress in forming SHGs/FPOs and supporting factory creation. Recommendations—such as replantation support, brand promotion, wider adoption of Good Agricultural Practices and capacity building—were incorporated into the revised TDPS for 2023-24 to 2025-26, according to the Minister of State for Commerce and Industry, Jitin Prasada.